PETALING JAYA: International investors sold RM486 million net of local equities on Bursa Malaysia last week as selling activities continued to slow down, compared with the RM631.9 million net disposed in the preceding week.
“In comparison to its other six Asian peers that we monitor, Malaysia remains as the nation with the third smallest foreign net outflow on a year-to-date basis. The year-to-date foreign outflow from Malaysia came to RM8.12 billion,” MIDF Research said in its fund flow report today.
It said last Monday recorded a foreign net outflow of RM108.5 million in tandem with the FBM KLCI’s 1.1% drop and the descent of Brent crude oil price to its lowest point in 18 years.
The tables were turned on Tuesday as off shore investors mopped up RM113.4 million net of local equities, snapping the 28-day foreign net selling streak.
The local bourse followed suit, gaining 1.7% to close at 1,350.9 points, the highest close in more than two weeks. Risk-on appetite was mainly boosted by the expansion in China’s manufacturing activity in March 2020.
However, the foreign net inflow was shortlived, as foreign investors dumped RM253.4 million on Wednesday, the highest foreign net outflow during the week. Investors’ nerves were frayed as Asian manufacturing activity data including Malaysia showed a slowdown last month.
The momentum of foreign net selling decelerated to RM96.8 million on Thursday, following US President Donald Trump’s expectation that Saudi Arabia and Russia would announce a deal on an oil production cut. As such, Brent crude oil price jumped by 28% on Thursday to US$29.9 per barrel, the largest daily gain in history.
Friday then saw a foreign net outflow of RM140.7 million as FTSE Russell kept Malaysia on the watchlist for bond index exclusion. Meanwhile, Malaysia’s exports grew by almost 12% in February 2020, the strongest in 16 months.
“In terms of participation, the average daily traded value of foreign investors increased the most by 5.5% to RM1.27 billion, which is still at a healthy level,” said MIDF.
